Question 1

Standard costing combines actual direct costs of materials and labor with estimated overhead costs to determine a product unit cost.

Accepted Answer

A) True 
 B)False

Question 2

The beginning finished goods inventory of Ronald Co.was $480,125.Goods completed during the year cost $963,250.The ending finished goods inventory was dangerously low,having been reduced to $135,850.The cost of goods sold for the year for Ronald Co.was

Accepted Answer

A) $618,975. 
B) $1,307,525. 
C) $1,579,225. 
D) $1,171,675. 
A) $618,975. 
B) $1,307,525. 
C) $1,579,225. 
D) $1,171,675.

Question 3

A materials request form is prepared whenever the purchasing department orders materials.

Accepted Answer

A) True 
 B)False

Question 4

Product costs for a manufacturing company consist of cost of direct materials,direct labor,and overhead.

Accepted Answer

A) True 
 B)False

Question 5

Managerial accounting reports should be prepared when they are needed,without regard to calendar dates or regularity of issue.

Accepted Answer

A) True 
 B)False

Question 6

Total manufacturing costs include all direct materials used as well as all direct labor costs and overhead costs incurred during a period.

Accepted Answer

A) True 
 B)False

Question 7

Management accountants are obligated to refrain from activities that would prejudice their ability to carry out their duties.

Accepted Answer

A) True 
 B)False

Question 8

Financial accounting reports are prepared on a periodic basis.

Accepted Answer

A) True 
 B)False

Question 9

Although some management accountants strive to update their knowledge and skills,such updating is within the realm of management accountants' ethical standards.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a product cost?

Accepted Answer

A) Depreciation on office furniture 
B) Manufacturing overhead 
C) Direct labor 
D) Direct materials 
A) Depreciation on office furniture 
B) Manufacturing overhead 
C) Direct labor 
D) Direct materials

Question 11

Cost of goods manufactured is equal to

Accepted Answer

A) Direct Materials + Direct Labor + Overhead. 
B) Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory. 
C) Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory. 
D) Beginning Work in Process Inventory + Product Costs. 
A) Direct Materials + Direct Labor + Overhead. 
B) Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory. 
C) Beginning Work in Process Inventory + Period Costs - Ending Work in Process Inventory. 
D) Beginning Work in Process Inventory + Product Costs.

Question 12

Which of the following is a source document for purchase of materials?

Accepted Answer

A) Vendor's invoice 
B) Purchase request 
C) Receiving report 
D) All of these 
A) Vendor's invoice 
B) Purchase request 
C) Receiving report 
D) All of these

Question 13

The amount of cost of goods sold and cost of goods manufactured will be the same if a company sells all of the units it produced.

Accepted Answer

A) True 
 B)False

Question 14

Total manufacturing costs incurred during a period are transferred to the

Accepted Answer

A) Cost of Goods Sold account. 
B) Work in Process Inventory account. 
C) Finished Goods Inventory account. 
D) Overhead account. 
A) Cost of Goods Sold account. 
B) Work in Process Inventory account. 
C) Finished Goods Inventory account. 
D) Overhead account.

Question 15

Which of the following is a period cost?

Accepted Answer

A) Advertising costs 
B) Indirect materials 
C) Manufacturing overhead 
D) Direct materials 
A) Advertising costs 
B) Indirect materials 
C) Manufacturing overhead 
D) Direct materials

Question 16

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future,the accountant has

Accepted Answer

A) not violated ethical standards. 
B) violated ethical standards only if the relative owns stock in the company. 
C) violated ethical standards because the relative could stand to gain personally from that information. 
D) not violated ethical standards because the information was relayed to a family member only. 
A) not violated ethical standards. 
B) violated ethical standards only if the relative owns stock in the company. 
C) violated ethical standards because the relative could stand to gain personally from that information. 
D) not violated ethical standards because the information was relayed to a family member only.

Question 17

The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 18

Which cost measurement method calculates product unit cost using estimates for direct materials,direct labor,and overhead?

Accepted Answer

A) Standard costing 
B) Actual costing 
C) Full costing 
D) Normal costing 
A) Standard costing 
B) Actual costing 
C) Full costing 
D) Normal costing

Question 19

The evaluation stage of management process includes comparing actual with the established standards.

Accepted Answer

A) True 
 B)False

Question 20

Cost of sugar is an indirect cost in the manufacture of candy bars.

Accepted Answer

A) True 
 B)False

Exam 17: Managerial Accounting and Cost Concepts

Standard costing combines actual direct costs of materials and labor with estimated overhead costs to determine a product unit cost.

The beginning finished goods inventory of Ronald Co.was $480,125.Goods completed during the year cost $963,250.The ending finished goods inventory was dangerously low,having been reduced to $135,850.The cost of goods sold for the year for Ronald Co.was

A materials request form is prepared whenever the purchasing department orders materials.

Product costs for a manufacturing company consist of cost of direct materials,direct labor,and overhead.

Managerial accounting reports should be prepared when they are needed,without regard to calendar dates or regularity of issue.

Total manufacturing costs include all direct materials used as well as all direct labor costs and overhead costs incurred during a period.

Management accountants are obligated to refrain from activities that would prejudice their ability to carry out their duties.

Financial accounting reports are prepared on a periodic basis.

Although some management accountants strive to update their knowledge and skills,such updating is within the realm of management accountants' ethical standards.

Which of the following is not a product cost?

Cost of goods manufactured is equal to

Which of the following is a source document for purchase of materials?

The amount of cost of goods sold and cost of goods manufactured will be the same if a company sells all of the units it produced.

Total manufacturing costs incurred during a period are transferred to the

Which of the following is a period cost?

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future,the accountant has

The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Which cost measurement method calculates product unit cost using estimates for direct materials,direct labor,and overhead?

The evaluation stage of management process includes comparing actual with the established standards.

Cost of sugar is an indirect cost in the manufacture of candy bars.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Costing Systems: Job Order Costing

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

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